Connect with us

Education

Understanding Student Loans

Understanding Student Loans

Student loans have become a necessity for nearly all students in America. With tuition on the rise every year, it’s no wonder that, according the American Student Assistance website, out of the 20 million Americans that attend college each year, 12 million of them will need to borrow annually to cover the cost. As it stands there are already 37 million people with student loans outstanding. With loans being so necessary to get higher education in America, it’s important to know what options are available to you if you. Here’s a little bit of information on each type of federal aid.

Stafford Loans

These are the most common type of student loans. A Stafford loan used to come in both subsidized and unsubsidized, the difference is that the latter starts to accrue interest as soon is the loans is paid to the student, rather than waiting until after the debtor has graduated. However, the loan now only comes in the unsubsidized form.

In order to qualify for a Stafford loan all you have to do is demonstrate a financial need. The easiest way to do this is to fill out a FAFSA form which is available at any college or university’s financial aid office. This form will ask a few questions about the income of the debtor and the debtor’s parents in order to determine how much money the student can borrow.

Understanding Student Loans

Perkins Loans

These loans are administered by the school. These loans are most commonly reserved for students who exhibit an exceptional need when it comes to financial aid. Unlike the Stafford loans can take as long as 20 years to pay off, the Perkins loan is required to be paid off within 10 years of graduating. Also unlike the Stafford loan, this loan does not accrue interest while the student is in school, a grace period or some kind of deferment period.

PLUS Loans

The PLUS loan offers money to borrow which is not based on financial need. This kind of loan is available to natural and adoptive parents or stepparents. The only requirement is that they have their credit in good standing.  If they meet that requirement then they can borrow up to the total cost of attendance.

Consolidation Loans

If you already have student loans that you are working on paying off, especially if you have more than one of the loans listed here then it might be a good idea to consolidate the loans. What this program will do is offer a no limit loan for you to pay off your current loans. The consolidation loan will have a fixed interest rate. That rate is calculated by taking the weighted average of the interest rates on all your other student loans.

Even though the interest rates on most federal student loans are fixed, depending on the year in which you took out your loan it may have been lower. This is a great option if you have varying interest rates and are looking to lower your overall interest payments.

Continue Reading

Recent Posts

Travel1 day ago

5 Tips For Getting Around in Vegas

Las Vegas is always on most travelers’ to Do list. Travelers to Las Vegas usually choose to fly. Many airlines...

Education1 day ago

5 Different Engineering Degrees You Can Study

Engineering is no longer the fearsome career path it once might have been. Engineering courses of study and achievement of...

Home Improvement5 days ago

Sparks and Smoke: 6 Signs Your House Needs Rewiring

If you bought an existing home, it’s likely the wiring was done a long time ago. Over the last few...

Autos5 days ago

Master Mechanic: How to Learn More About Your Vehicle

Driving a vehicle on a regular basis is one thing. Understanding how it works, however, is a whole other ball...

packers and movers packers and movers
Home Improvement7 days ago

Tips to choose packers and movers to help move your office space

Numerous moving companies in India help make your move to any city as smooth as possible. They offer quality and...

Health1 week ago

Enjoy Responsibly: The Safest Methods for Using Cannabis

As cannabis is becoming more and more legalized across the nation, people are becoming more curious about its uses. With...

moving services in Toronto moving services in Toronto
Home Improvement1 week ago

Tips on finding moving companies in Toronto providing comfortable moving services

Moving to an interstate location shall be stressful, especially if you are about to relocate on your own. Hiring professional...

Autos2 weeks ago

Choosing the Right Tail Lights for Your Car or Bike

If you need new tail lights for your car or bike, you’ll want to take several factors into consideration so...

End of lease cleaning in Melbourne End of lease cleaning in Melbourne
Home Improvement2 weeks ago

End of lease cleaning in Melbourne – Move in and Move out easily

If you are a tenant, you are sure to be aware of the fact that you get to move into...

team in Sydney team in Sydney
Lifestyle2 weeks ago

Tips in finding a trustworthy removalists team in Sydney

Relocating to a newly rented or leased house space can be a tedious and time-consuming process to perform on your...

Lifestyle2 weeks ago

4 Fashion Additions to Complete Your Outfit

A wonderful outfit can make you appear and feel like someone who can conquer the world without even breaking a...

Autos2 weeks ago

How to Go about Selling an Old Car for Parts

Selling an old car for parts is easier than most people realize, and your junker could be worth quite a...

Business3 weeks ago

4 Things to Consider Before Choosing a Feed Tank for Your Manufacturing

In every day manufacturing you may find that you need a feed tank for your operation. Selecting the right feed...

Tech3 weeks ago

How to Find a Phone that Fits your Needs

Are you looking to buy a phone that may suit your needs without poking a hole in your wallet? You...

Lifestyle4 weeks ago

Elegant Dinner: 4 Ways to Fancify Your Next Get-Together

Throwing a social gathering in the comfort of your own home can be a joy. If you want your upcoming...

Categories

Archives

Trending